CABLE TELEVlSlON ORDlNANCE FOR. ClTY OF ST. ANTHONY I

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1 CABLE TELEVlSlON ORDlNANCE FOR ClTY OF ST. ANTHONY I ldaro

2 CONTENTS Seetion 1. Seetíon 2. Seetion 3. Seetion 4. Seetion 5. Seetíon 6. Seetíon 7. Seetíon 8. Seetíon 9. Seetíon 10. Seetíon 11. Seetíon 12. Seetíon 13. Seetion 14. Seetion 15. Seetion 16. Seetion 17. Seetíon 18. Seetíon 19. Definítions... 1 Grant of Authority... 2 Duration of Franehíse... 2 Renewal Proeedures... 3 Transfer of Ownership or Control... 3 Franehise Payment... 3 Books and Reeords... 3 Liability Insuranee and Indemnifieation....4 Conditions of Street OeeLlpaney....4 Maintenanee and Repairs... 6 Serviee... 6 Unauthorized Praetiees and Penalties... 7 Cornplianee with Applieable Laws... 8 Breaeh & Termination... 8 Rules and Regulations... 8 Failure of City to Enforee this Franehise,... 9 No Waiver of the Terms Thereof Severability... 9 Aeeeptanee by Company... 9 Notiee... 9

3 Ordinance AN ORDINANCE GRANTING TO CABLE ONE, INC., FOR A PERIOD OF FIFTEEN (15) YEARS FROM AND AFTER THE PASSAGE, ACCEPTANCE AND EFFECTlVE DATE OF THIS ORDINANCE, THE NONEXCLUSIVE RIGHT, PRIVILEGE AND FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN A CABLE TELEVISION SYSTEM IN, UPON, ALONG, ACROSS, ABOVE, OVER, AND UNDER STREETS, ALLEYS, EASEMENTS, OPEN AREAS, PUELIC WAYS AND PUELIC PLACES, NOW LAID OUT OR DEDlCATED, AND ALL EXTENSIONS THEREOF AND ADDITIONS THERETO, IN THE CITY OF STo ANTHONY, IDAHO: PROVIDING TERMS AND CONDITIONS FOR THE OPERATION OF SUCH CABLE TELEVISION SYSTEM AND THE PAYMENT OF FEES THEREFORE. WHEREAS, prior to adoption of this Ordinance a full public proceeding affording due process was held and the legal, character, financial and technical qualification of Cable One, Inc., as well as the adequacy of the services it proposes and the adequacy and feasibility of its plans to provide service were considered now therefore, BE IT ORDAlNED BY THE CITY COUNCIL ANO MAYOR OF ST. ANTHONY, IDAHO, AS FOLLOWS: SECTION 1. DEFINITIONS For purposes of this Ordinance the following terms, phrases, words, abbreviations and their derivations shall have the same meaning given herein. A. Cable Television System or System shall mean the Company's system of antennas, cables, amplifiers, towers, microwave links, waveguides, satellites, or any other conductors, converters, equipment or facilities designed and constructed for the purpose of producing, receiving, amplifying, storing, processing or distributing audio, video, digital, or other forms of electronic, electrical, or light signals capable of being transmitted by wire, cable, fiber optics or radio to subscribing members of the public in the City who pay for such services. B. City shall mean the City of Sto Anthony, Idaho, and all territory within its governmental authority. c. City Council shall mean the present governing body of the City, or any successor to the legislative powers of the present government body.

4 D. Company shall mean Cable One, lnc., a Delaware Corporation. E. Federal Communications Commission or FCC shall mean the agency as presently constituted by the U. S. Congress or any successor agency authorized by the Congress to regulate cable television systems. F. Gross Revenues shall mean all revenue deri ved by the Company, its affiliates or subsidiaries from subscription to its cable television services in the City, but shall not include revenue from cable advertising, sale or exchange of assets or equipment, cable modem services, telecommunications services, any taxes on services furnished by the Company and imposed directly upon a subscriber or user by the state, city, or other governmental unit and collected by the Company on behalf of the said governmental unit, or any amounts collected directly from subscribers to satisfy the franchise fee requirements of this Ordinance. G. Person shall mean any person, firm, partnership, association, corporation, company, or organization of any kind. H. Regular Subscriber Service shall mean that service regularly provided by the Company to all subscribers. l. Street shall mean the surface of and the space aboye and below any public street, road, highway, freeway, lane, path, public way, or place, alley, court, boulevard, parkway, drive, or other easement now or hereafter held by the City for the purpose of public travel and shall include other easements or rights of way as shall be now held or hereafter by the City which shall, within their proper use and meaning, entitle the City and the Company to the use thereof for the purposes of installing or transmitting cable television system transmission over poles, wires, cables, conductors, ducts, conduits, vaults, manholes, amplifiers, appliances, attachments, and other property as may be ordinarily necessary and pertinent to a cable television system. SECTION 2. GRANT OF AUTHORITY The City hereby grants to Cable One, lnc. f a nonexclusive right, privilege, and franchise to construct, operate, and maintain a cable television system in, upon, across f aboye over and under, streets, alleys, easements, open areas, public ways f and public places now laid out or dedicated in the City and upon annexation of any territory to the City, this Franchise shall extend to the territory so annexed. SECTION 3. DURATION OF FRANCHISE (a) Term. The Franchise shall take effect on the effective date of this Ordinance and shall continue in force for a

5 period of fifteen (15 years, subjeet to the eonditions and restrietions herein provided. (b) Early Termination. The Company may surrender this Franehise at any time and the City may require the surrender of the franehise from Cable One, Ine. upon filing with the other party a written notiee of its intention so to do, at least six (6) months before the surrender date. All the rights and privileges and all of the obligations, duties, and liability of the Company and the City under this Ordinanee, exeept as to the extent previously aeerued hereunder, shall terminate on the surrender date speeified in sueh notiee. (e) Conversion to State-Issued Franehise. The Company may eonvert this franehise to a franehise issued by the State of Idaho at any time if the State begins to issue cable television franehises. SECTION 4. RENEWAL PROCEDURES This Franehise may be renewed by the City upon applieation of the Company pursuant to the proeedure established by this seetion, and in aeeordanee with the Cable Aets of 1984 and 1992, and/or any future relevant laws. SECTION 5. TRANSFER OF OWNERSHIP OR CONTROL (a) Assignment or Transfer. This Franehise shall not be assigned or transferred without the prior approval of the City Couneil of the City of St. Anthony whieh shall not be withheld unreasonably. The purehaser, assignee, or transferee must demonstrate to the satisfaetion of the City Couneil of the City of St. Anthony, its finaneial and teehnieal ability to operate and maintain the System. (b) Notiee. The Franehisee under this doeument shall give the City. of Sto Anthony written notiee of any proposed purehaser, asslgnee, or transferee of this Franehise and should the City fail to eall a meeting of the City Couneil to eonsider and aet upon sueh proposed sale, assignment or transfer within sixty days following reeeipt of written notiee of sueh proposed sale, transfer, on assignment, the City shall be deemed to have eonsented to the proposed sale, transfer, or assignment. SECTION 6. FRANCHISE PAYMENT (a) Franchise Fee. For the use of the streets and other facilities of the City in the operation of the cable television system, and in lieu of all lieenses, permits, taxes, and other similar fees, the Company shall pay the City on or before February 28 th of each year a franehise fee in an amount - 3

6 egual to five percent (5%) of the annual gross revenues received by the Company during the previous calendar year. (b) Inspection. The City shall have the right to inspect the Company's income records, and the right to audit and to recompute any amounts determined to be payable under this Ordinance i provided, however, that such audi t shall take place within twelve (12) months following the close of each of the Company's fiscal years. Any additional amount due to the City as a result of the audit shall be paid within thirty (30) days following written notice to the Company by the City which notice shall include a copy of the audit reporto SECTION 7. BOOKS ANO RECORD S (a) Books and Records. The Company shall keep a full and accurate set of books showing the amount of gross revenues received by the Company from the area governed by the City, based upon which the franchise payrnents to be made hereunder are computed. (b) Installation Map. The Company shall at all time maintain a complete working map showing the exact location of all the eguipment of the cable television system installed or in use in streets and other public places in the City, and such map shall be accessible at normal business hours to the City for all proper purposes. (c) Examination of Books and Records. At all reasonable times, the Company shall permit the City, or its duly authorized representatives to examine all public books and records of the Company concerning operations of its cable television system in the area governed by the City, and to examine any and all maps and any other records kept or maintained by the Company which deal with the operations and affairs of the Company with respect to this Franchise. SECTION 8. LIABILITY INSURANCE: ANO INDEMNIFICATION Public Liability Insurance. (a) At all times during the existence of the Franchise granted hereunder, the Company shall at its own cost and expense, maintain in full force and effect a general comprehensive liability insurance policy, protecting the City against liability for loss or damage for personal injury, death, and property damage, occasioned by the negligence or default of the Company under the Franchise, with maximurn liability limits of Five Hundred Thousand Dollars ($500,000.00) for personal injury or death of any one person, and Five Hundred Thousand Dollars ($500,000.00) for personal injury or death of two - 4-

7 or more persons in any one occurrence, Five Hundred Thousand Dollars ($500,OOO.00) for damage to property resulting from any one occurrence and Five Hundred Thousand Dollars ($500,000.00) for all property claims in the aggregate. (b) The policy or policies of insurance mentioned in the foregoing paragraph shall name the City, its officers and agents, as an additional insured and shall contain a provision that a written notice of cancellation or reduction in coverage of said policy shall be delivered to the City thirty (30) days in advance of the effective date thereof. SECTION 9. CONDITIONS OF STREET OCCUP~CY (a) Location of Poles and Fixtures. The Company shall not place poles or other fixtures where the same will interfere with any gas, electric, or telephone fixtures, water hydrant, mains or public sewer lines, and all such poles or other fixtures placed in any street shall be placed in the right-of-way between the roadway and the property as directed by the City. (b) Restoration. The Company shall, upon completion of any work requiring the opening of any street or public place, restore the same including the paving and its foundations, to as good condition as formerly and in a manner and quality approved by the City, and shall exercise reasonable care to maintain the same thereafter in good condition. Said work shall be performed with due diligence and if the Company shall fail to perform and complete the work within a reasonable time, to remove all dirt and rubbish and to put the street or public place in good condition, the City shall have the right to put the street or public place in good condition at the expense of the CompanYi and the Company shall upon demand, pay to the City the cost of such work done for or performed by the City. (c) Relocation offacilities. Whenever the City shall grade, regrade or change the line of any street or public place or construct or reconstruct any sewer or water system therein and shall, with due regard to reasonable working conditions, order the Company to relocate or protect its wires, conduits, cables, and other property located in said street or public place, the Company shall relocate or protect its facilities at its own expense. The City shall give the Company reasonable notice of plans to grade, regrade, or change the line of any street or public place or to construct or reconstruct any sewer or water system therein. (d) Protection of Facilities. Nothing contained in this section shall relieve any person, or corporations, from liability arising out of the failure to exercise reasonable care - 5

8 to avoid injuring the Companyl s facilities while performing any work connected wi th grading, regrading, or changing the line of any street or public place or wi th the construction or reconstruction of any sewer or water system. (e) Notice of Improvements. The City shall give the Company reasonable written notice of plans for street improvements where paving or resurfacing of a permanent nature is involved that would affect the Companyls facilities, which notice shall contain the nature and character of the improvements, the streets upon which the improvements are to be made, the extent of the improvements and the time when the Ci ty is going to start the work. The notice shall be gi ven to the Company a sufficient length of time, considering reasonable working conditions, in advance of the actual commencement of the work to permit the Company to make any addition, alterations, or repairs to its facilities deemed necessary. (f) Facilities Not Hazardous to Publico All wires, conduits, cables, and other property and facilities shall be so located, constructed, installed, and maintained as not to endanger or unnecessarily interfere with the usual and customary trade, traffic, and travel upon the streets and public place s of the City. The Company shall keep and maintain all of its property in good condition, order, and repair, so that the same shall not menace or endanger the life or property of any person. The Company shall keep accurate maps and records of all its facilities and furnish copies of such maps and records as requested by the City. Adherence to the City requirements for placement of Company wires, conduits, cables and other property and facilities shall be deemed proof of compliance with this section. (g) Moving of Buildings. The Company shall, on the request of any person holding a building moving permit, temporarily raise or lower its wires to permit the moving of buildings. The expense of such temporary removal, raising or lowering of wires shall be paid by the person requesting the same, and the Company shall have the authority to require such payrnent in advance. SECTION 10. MAINTENANCE ANO lmpairs. (a) Maintenance of System. The Company shall erect and maintain all parts of the system in good condition throughout the entire franchise periodo (b) Interruption of Service. Whenever it is necessary to shut-off or interrupt service for the purpose of making repairs, adjustments, or installations, the Company shall use its best efforts to do so during periods of minimum use of the system by subscribers. Unless such interruption is unforeseen and immediately necessary, the Company shall give subscribers - 6-

9 reasonable notice of any planned interruption of service. AII costs incurred in repairing and correcting an interruption of service shall be borne by the Company i provided, however, that nothing herein shall prevent the Company from recovering the costs incurred from persons responsible for occurrences or acts which result in damage to the cable television system. SECTION 11. SERVICE. (a) Construction. Company has fully constructed an operational cable system currently serving the City. (b) Availability. Where technically and economically reasonable I Cable television service shall be available to all areas within the corporate limits of the City which have a minimum of sixty (60) dwelling units per street mile. (e) Extensions. AII applicants desiring cable antenna service at a location greater than 300 feet from the nearest distribution line shall pay to the Company its actual costs of labor and material s for said installation. (d) Additional Territory. In the adjacent territory is incorporated within the annexation or otherwise, the Company' s rights this Ordinance shall be deemed to include territory. event additional City' s limits, by and duties under such additional SECTION 12. UNAUTHORIZED PRACTICES ANO PENALTIES. (a) Franchise Required. for Cable Television System. From and after the effective date of the Ordinance, it shall be unlawful for any person to establish, operate, or to carry on the business of distributing to any person in the City any television signals or radio signals by means of a cable television system unless a franchise therefore has first been obtained pursuant to the provisions of a City or State Ordinance, and unless such franchise is in full force and effect. (b) Franchise Required for Use of Right-of-Way. From and after the effective date of this Ordinance, it shall be unlawful for any person to construct, install, or maintain within any public street in the City, or within any other public property of the City, or within any privately owned area within the City which has not yet become a public street but is designated or delineated as a proposed public street on any tentati ve subdivision map approved by the City, any equipment or facilities for distributing any television signals or radio signals through a cable television system, unless a franchise authorizing use of such street, property, or areas has first been obtained pursuant to provisions of a City Ordinance, and unless such franchise is in full force and effect. - 7-

10 (c) Unauthorized Connections Prohibited. It shall be unlawful for any person, firm, or corporation to make any unauthorized connection, whether physically, electrically, acoustically, inductively, or otherwise, with any part of a franchised cable television system within this City for the purpose of taking or receiving television signals, radio signals, pictures, programs, data or sound. (d) Tampering with Cable Television System Equipment Prohibited. It shall be unlawful for any person, without the consent of the Company, to willfully tamper with, remove, or injure any cables, wires, or equipment used for distribution of television signals, radio signals, pictures, programs, or sound. (e) Penalties provision of Section 12 under federal and Idaho incarceration. for Violation. The violation of any of this Ordinance is a misdemeanor, and law the same is punishable by fine and SECTION 13. COMPLIANCE WITH APPLICABLELAWS. The Company shall at all times comply with all laws, ordinances and regulations of the federal, state and City governments or any administrative agencies thereof. If any federal or state law or regulation shall be in conflict with the terms of this Franchise, or any ordinance of the Ci ty, then as soon as possible following knowledge thereof, the Company shall notify the City of the point of conflicto SECTION 14. BREACH AND TERMINATION. (a) Breach. In addition to all other rights and powers retained by the City under this Franchise or otherwise, the City reserves the right to terminate the Franchise and all rights and privileges of the Company hereunder in the event of a substantial breach of its terms and conditions. A substantial breach by Company shall include the following: (1) Violation of any material provision of the Franchise or any material rule, order, regulation or determination which the City is authorized to make under the terms of this Franchise. (2) Attempt to evade any material provision of the Franchise or attempts to practice any fraud or decei t upon the Ci ty or i ts subscribers or customers 8 -

11 (3) Material misrepresentation of fact in the application for or negotiation of the Franchise. (b) Excuse for Breach. The foregoing shall not constitute a substantial breach if the violation occurs, but it is without fault of the Company or occurs as a result of circumstances beyond its control. SECTION 15. RULES ANO REGULATIONS. {a} Subject to the laws of the State of Idaho, in addition to the inherent powers of the City to regulate and control this Franchise, and those powers expressly reserved by the City herein, the right and power is hereby reserved by the City to promulgate such additional regulations as it shall find necessary in the exercise of its lawful powers and in furtherance of the terms and conditions of this Franchise. {b} The City may al so adopt such regulations at the request of the Company upon application. SECTION 16. FAILURE OF CITY TO ENFO~CE THIS FRANCHISE~ WAIVER OF THE TERMS THEREOF. The Company shall not be excused from complying with any of the terms and conditions of this Franchise by any failure of the City upon any one or more occasions to insist upon or to seek compliance with any such terms or conditions. SECTION 17. SEVERABILITY. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held illegal, invalid, or unconstitutional by any court of competent jurisdiction or the FCC, such decision shall not affect the validity of the remaining portions. The invalidity of any such portion of this Ordinance shall not abate, reduce, or otherwise affect any consideration or other obligation required by the Ci ty of the Company under the Franchise granted. SECTION lª. ACCEPTANCE BY THE COMPANY. The Franchise granted pursuant to this Ordinance and its terms and provisions shall be unconditionally adopted by written instrument executed and acknowledged by the appropriate officials of the City and delivered to the Company which shall accept same not later than twenty (20) days after receiving it by acknowledging the Company's acceptance in writing. SECTION 19. NOTICE. - 9-

12 All notices called for in notice and will be considered mailed by registered mail or requested and addressed to the below: To City: To Company: this Franchise shall be written as being completed notice when certified mail return receipt party to be notified as shown City of Sto Anthony 420 North Bridge S1. Anthony, Idaho Cable One, lnc North 3 rd Street Phoenix, Arizona SECTION 20. RE PEAL OF CONFLICTING PROVISIONS AH provisions ofthe St. Anthony, Idaho City Code which conflict with the provisions of this ordinance are hereby repealed to the extent of such conflict. SECTION 21. EFFECTIVE DATE This ordinance shall be effective upon its passage and publication as provided by law. PASSED by the Council of the City of Sto Anthony on this the 8th day of July, ATTEST: /~~ ' :i ~son, Mayor -= Patty Unruh Parkinson, City Clerk (Seal) - 10-

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